Adani Enterprises Limited (AEL) has unveiled its third public issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) worth Rs 1,000 crore, offering up to 8.90% per annum. The issuance is set to commence on January 6 and conclude on January 19, with the possibility of early closure or extension. Each NCD has a face value of Rs 1,000.
Interested investors can apply for a minimum of 10 NCDs, with subsequent multiples of 1 NCD, and the minimum application size is Rs 10,000. AEL, recognized as India’s largest listed business incubator by market capitalization, disclosed that the base size issue is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (green shoe option), totaling Rs 1,000 crore.
Adani Group’s Group CFO Jugeshinder ‘Robbie’ Singh expressed, “This third NCD issuance signifies our commitment to expanding access to India’s capital markets and involving retail investors in long-term infrastructure growth.” Singh emphasized AEL’s dedication to fostering businesses that will drive India’s economic progress, focusing on various sectors like airports, roads, data centers, and green hydrogen.
At least 75% of the proceeds from the issuance will be allocated to prepayment, repayment, or partial payment of the company’s debts, with the remainder (up to 25%) earmarked for general corporate purposes. Notably, AEL’s previous NCD issuance of Rs 1,000 crore, launched in July last year, was fully subscribed within three hours on the opening day.
The current NCD offering by AEL arrives amidst recent rate reductions and a more favorable interest rate environment, providing investors with stable, fixed-income opportunities. With competitive yields compared to similar NCDs and fixed deposits, this public issue presents an attractive investment avenue for interested parties.
